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Sri Lanka is currently experiencing its first-ever default on debt as it grapples with its most severe financial crisis in over 70 years. The country has failed to make $78 million in unpaid debt interest payments even after the 30-day grace period expired on Wednesday. The central bank governor acknowledges that Sri Lanka is now in a state of "pre-emptive default." This default is expected to impact the country's reputation with investors and hinder its ability to borrow funds internationally, further affecting its currency and economy.
Wednesday, 18 May, 2022